Vidhi Codex

THE GOVERNMENT SECURITIES ACT, 2006

The Government Securities Act, 2006

Corporate200636 sections

This Act governs Government securities issued by the Central and State Governments and managed by the Reserve Bank of India. It sets out the forms securities can take, including holdings in a subsidiary general ledger account, and how they are transferred. It covers nomination, the rights of joint holders and survivors, and how title passes when a holder dies. The Reserve Bank can issue duplicate securities, decide title in a summary way, and make vesting orders, and payments of interest and principal made according to the Act discharge the Government's liability.

Start reading →Read full ActSections
  1. 1. Short title, application and commencement
  2. 2. Definitions
  3. 3. Forms of Government securities
  4. 4. Subsidiary general ledger account
  5. 5. Transfer of Government securities
  6. 6. Holding of Government securities by holders of public offices
  7. 7. Recognition of title to Government security of deceased sole holder or joint holders
  8. 8. Right of survivors of joint holders or several payees
  9. 9. Nomination by holders of Government securities
  10. 10. Bank or the Government shall take due note of such decree, order, certificate or other authority.
  11. 11. Issue of duplicate securities and of new securities on conversion, consolidation, sub-division, renewal, stripping or reconstruction
  12. 12. Summary determination by Bank of title to Government security in case of dispute
  13. 13. Law applicable in regard to Government securities
  14. 14. Postponement of payments and registration of transfers pending the making of vesting order
  15. 15. Power of Bank to require bonds
  16. 16. Publication of notices in Official Gazette
  17. 17. Procedure and scope of vesting order
  18. 18. Legal effect of orders made by Bank
  19. 19. Stay of proceedings on order of Court
  20. 20. Cancellation by Bank of vesting proceedings
  21. 21. Discharge in respect of interest on Government securities
  22. 22. Discharge in respect of bearer bonds
  23. 23. Period of limitation of Governments’ liability in respect of interest
  24. 24. Inspection of documents
  25. 25. Micro films, facsimile copies of documents, magnetic tapes and computer print outs as documents of evidence
  26. 26. Bank and its officers to be public officers
  27. 27. Misuse of subsidiary general ledger account facility
  28. 28. Pledge, hypothecation or lien
  29. 29. Power to call for information, cause inspection and issue directions
  30. 30. Contravention and penalties
  31. 31. Certain laws not to apply to Government securities
  32. 31A. Powers of Bank not to apply to International Financial Services Centre
  33. 32. Power to make regulations
  34. 33. Construction of references to laws not in force in Jammu and Kashmir
  35. 34. Power to remove difficulties
  36. 35. Repeal and saving

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